NioCorp Announces Amendment to Second Preliminary Economic Assessment
October 16, 2015 (Source: Marketwired) — NioCorp Developments Ltd. (“NioCorp” or the “Company”) (TSX:NB)(OTCQX:NIOBF)(FRANKFURT:BR3) announces that as a result of a review by the British Columbia Securities Commission, it has amended its second Preliminary Economic Assessment (PEA2 Amended) for its Elk Creek, Nebraska Niobium Project. PEA2 Amended retains the technical and economic results previously disclosed by NioCorp in its August 4, 2015 and September 4, 2015 news releases and includes additional guidance and cautionary language required by National Instrument 43-101 regarding uncertainty in realizing the results of PEA2. PEA2 Amended provides additional descriptions of the scandium demand and pricing assumptions included in PEA2, including that a significant portion of the Project revenue, and achieving that revenue projected in PEA2, is subject to market growth in scandium, which is a developing market with a risk of oversupply and/or undersupply disrupting pricing.
The Mineral Resource presented in PEA2 Amended has been reported following CIM guidelines. PEA2 Amended is preliminary in nature and it includes a level of engineering precision and assumptions which are currently considered too speculative to have the economic considerations applied to them that would enable Mineral Resources to be categorized as Mineral Reserves. Inferred Mineral Resources are not included in the mine plan for PEA2 Amended. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. PEA2 Amended includes price and market assumptions concerning an expanded demand in the scandium market. There is no certainty that the PEA2 Amended will be realized.
Jeff Osborn, BSc Mining, MMSAQP of SRK Consulting (U.S.), Inc., a Qualified Person as defined by National Instrument 43-101, has overall responsibility for SRK portions of the Elk Creek PEA2 Amended and has read and approved the technical information contained in this news release.
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NioCorp is developing the Elk Creek Niobium / Scandium / Titanium project in Southeast Nebraska. Niobium is used to produce High Strength, Low Alloy (“HSLA”) steel, which is a lighter, stronger steel used in automotive, structural, and pipeline applications. Scandium can be combined with Aluminum to make an alloy with increased strength and improved corrosion resistance. Scandium is also a critical component of advanced solid oxide fuel cells. Titanium is a key component of pigments used in paper, paint and plastics and is also used for aerospace applications, armor and medical implants.
Special note about forward-looking statements:
Neither TSX nor its Regulation Services Provider (as that term is defined in the policies of the TSX) accepts responsibility for the adequacy or accuracy of this release.
Certain statements contained in this press release may constitute forward-looking statements. Such forward-looking statements are based upon NioCorp’s reasonable expectations and business plan at the date hereof, which are subject to change depending on economic, political and competitive circumstances and contingencies. Readers are cautioned that such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause a change in such assumptions and the actual outcomes and estimates to be materially different from those estimated or anticipated future results, achievements or position expressed or implied by those forward-looking statements. Risks, uncertainties and other factors that could cause NioCorp’s plans or prospects to change include changes in demand for and price of commodities (such as fuel and electricity and the commodities being explored and proposed for development by NioCorp – niobium, titanium, scandium) and currencies; changes or disruptions in the securities markets; legislative, political or economic developments; the need to obtain permits and comply with laws and regulations and other regulatory requirements; the possibility that actual results of work may differ from projections/expectations or may not realize the perceived potential of NioCorp’s projects; risks of accidents, equipment breakdowns and labor disputes or other unanticipated difficulties or interruptions; the possibility of cost overruns or unanticipated expenses in development programs; operating or technical difficulties in connection with exploration, mining or development activities; the speculative nature of mineral exploration and development, including the risks of diminishing quantities of grades of reserves and resources; and the risks involved in the exploration, development and mining business. NioCorp disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise.